The Federal Inland Revenue Service (FIRS) has filed a lawsuit against Binance Holdings Limited, demanding $79.51 billion and ₦231 million in damages for alleged economic losses to Nigeria. The suit, filed at the Federal High Court in Abuja, also seeks $2.001 billion in unpaid income taxes for 2022 and 2023.
FIRS accuses Binance and two executives, Tigran Gambaryan and Nadeem Anjarwalla, of failing to register for tax compliance and violating Nigerian financial regulations. This marks the third legal action against Binance in Nigeria, following charges by the Economic and Financial Crimes Commission (EFCC) over tax evasion, money laundering, and foreign exchange violations.
The Nigerian government alleges Binance operated in the country for over six years without proper registration, accruing significant financial penalties, including a 10% tax default penalty and a 26.75% annual interest rate based on the Central Bank of Nigeria’s (CBN) lending rate.
An affidavit from the National Security Adviser’s (NSA) office states that Binance executives admitted to having 386,256 active Nigerian users, a trading volume of $21.6 billion in 2023, and net revenue of $35.4 million from Nigerian transactions. The NSA further claims Binance refused to provide six years’ worth of business records despite a court order.
FIRS is now seeking a court declaration compelling Binance to pay corporate income tax, file tax returns for 2022 and 2023, and settle all outstanding taxes with penalties, while also compensating the Nigerian government for alleged economic damages.
